Accounting and Finance

UK businesses try to buy their way out of the talent shortage

Accounting and finance workers may be the power behind the throne in almost every organisation, but low supply and rising demand have become bad news for business. In almost every region and major city across the UK, hiring difficulty and salaries are increasing.

Accounting and Finance Roles – Rise of the Contract Worker

With demand outstripping supply by some margin, businesses are turning to more temporary accounting and finance employees – but must pay a high price to do so

The candidate pool:The UK’s total talent pool of accounting and finance workers remains robust, with more than 1.08 million working in financial services alone, and demand for employees with suitable financial skills growing in almost every discipline. However, on top of persistent supply/demand shortages, fewer university graduates with necessary financial degrees, the relocation of UK finance workers post Brexit, and up to 33% of current UK accountants planning to leave the industry in the next five years, are other, more deep rooted factors driving competition by businesses for skilled accounting and finance workers.

Many businesses in key industries are seeking the same finance talent:

Financial Managers. Accountants. Compliance Officers. Finance Analysts. Accounting Technicians.

And the same skills:
Testing.
Agile.
Financial Reporting.

Source: Gartner Q4 2022

Shortage or surplus?Competition for finance and accounting workers remains high, as every major industry - Banking, Financial Services, Insurance, IT, Manufacturing, Pharmaceuticals, and Retail – report increasing demand for finance talent, and with virtually all these industries seeking workers to fill the same roles and bring the same skill sets. According to a recent Gartner survey, business leaders and HR executives should expect extreme competition for Accountants, Financial Managers, Compliance Officers, Accounting Technicians, and Finance Analysts into 2024. This view is borne out by the statistics below - low supply of suitable candidates at the national, regional and city levels is increasing hiring difficulty. Only the South East and Scotland have a high supply of temporary candidates and there are only an average 208 candidates per permanent roles across the UK. In contrast, Scotland is particularly difficult for firms seeking permanent workers, as there are only 87 candidates for every vacancy. In summary, some temporary workers salaries are 50% more* than the pay offered to permanent employees. *Indeed.comWhy is this?

Fewer accounting and finance workers post-Brexit.

Businesses concerned about increasing their permanent payroll amid the current economic uncertainty are instead opting for short-term contract workers. Increasing demand and static supply is elevating compensation for temporary workers.

Many businesses seeking candidates with a bachelor’s degree as a minimum – limiting the talent pool.

National average of 138 candidates per job posting (temp and permanent) does not reflect wider regional and city disparities – for example, ratio of temporary candidates per accounting assistant job in Leeds is 23 to 1 (very difficult to hire), whereas in Birmingham it is 143 to 1, (less difficult to hire). Depending on where they are located, some employers will find it significantly more difficult to hire accounting and finance talent. *(Indeed.com)

What can businesses do to boost their attraction and retention rates?

Increase salary offers for permanent employees

Limit deployment of short-term workers

Offer training to provide path to career development for applicants with High school credentials

Consider relocation subsidies to attract talent

Accounting and Finance Roles – Salaries

Hiring difficulty, salaries, and other recruiting data for sample Accounting and Finance roles – permanent and temporary hiring.ACROSS THE UK
Accounting and Finance Permanent Roles (scroll to view)

Sample role	Accountant Assistant
Annual salary range for these roles	£20,200 (below market) £27,075 (market median) £32,900 (above market)
Hiring difficulty	Slightly difficult - (scores 3 out of 10) - average job posting: 36 days
Supply vs Demand	High – (scores 3 out of 10) – market favours employer
Top 3 titles in job postings	Accountant Assistant Finance Assistant Bookkeeper
Top 3 skills in job postings	Accounting Finance Communication
Top 3 credentials in job postings	Association of Accounting Technicians Accredited Management Accountant Driver’s license
Most common experience level	Mid-level (3 -7 years)
Most common education level	High School (96%)

ACROSS THE UK
Accounting and Finance Temporary Roles (scroll to view)

Sample role	Accountant
Annual salary range for these roles	£23,751 (below market) £38, 330 (market median) £58, 414 (above market)
Hiring difficulty	Slightly difficult - (scores 3 out of 10) - average job posting: 35 days
Supply vs Demand	Very high – (scores 2 out of 10) – market favours employer
Top 3 titles in job postings	Management Accountant Accountant Financial Accountant
Top 3 skills in job postings	Accounting Communication Finance
Top 3 credentials in job postings	Associate Chartered Certified Accountant Accredited Management Accountant Association of Accounting Technicians
Most common experience level	Mid-level (3 -7 years)
Most common education level	Bachelor’s degree (100%)

Accounting and Finance Roles – Salaries by Region

Average regional median salaries and the rate of supply and demand for employees – permanent and temporary hires – Accounting and Finance roles.Sample roles:

Accountant Assistant

Accountant

Across the UK there is an acute skill shortage in finance and accounting roles, particularly those with mid to high level experience. As businesses struggle to hire permanent finance workers and balance economic uncertainty, many are switching to short-term temporary workers – a tactic where higher compensation and contract agency fees are causing temporary salaries to significantly outstrip offers for permanent Accountant employees in every region except Wales and the West Midlands.

Accounting and Finance Roles – Salaries by City

Median salaries and the rate of supply and demand for employees in selected UK cities – permanent and temporary hires – Accounting & Finance roles. Sample roles:

Accountant Assistant

Accountant

At the extremes:

Highest permanent salary in the UK: London £45,699 p.a. Lowest permanent salary in the UK: Glasgow £25,838 p.a
Highest temporary salary in the UK: London £48,500 p.a. Lowest temporary salary in the UK: Southampton £28,000 p.a